CLS Stock Recent News

Celestica seems to be treading in the middle of the road and investors could be better off if they trade with caution.

Celestica Inc. is poised for a strong Q1 earnings release, driven by AI tailwinds and robust demand in enterprise communications and data center markets. The company's transformation into a high-margin AI infrastructure provider and strategic partnerships bolster its growth prospects and international expansion. Celestica's solid financial position and history of earnings surprises enhance confidence in its ability to deliver double-digit EPS growth.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

JBL seems to be a better investment option at the moment compared with CLS.

Celestica posted 21% YoY revenue growth in CY 2024, driven by 30% CCS segment expansion and strong hyperscaler demand. Q4 CY 2024 revenue hit $2.546B, with $1.74B from CCS, which now makes up 68% of total sales. Free cash flow grew 11.6% in Q4 and is projected to rise 14.4% in CY 2025, outpacing revenue growth.

TORONTO, April 08, 2025 (GLOBE NEWSWIRE) -- Celestica's (TSX: CLS) (NYSE: CLS) first quarter financial results and conference call will take place on Friday, April 25. The conference call start time is 8:00am ET. Financial results will be released after market close on Thursday, April 24.

I upgraded Celestica Inc. (CLS) to "Buy" due to its strong financial performance, AI-driven data center investments, and improved operating margins. Despite a 45% stock dip from tariff announcements, Celestica's valuation post-dip and manageable long-term impact justify a positive outlook. Insider selling remains a concern, but the firm's robust growth, FCF generation, and new customer acquisitions support long-term potential.

Celestica (CLS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Celestica reported robust Q4 2024 revenue growth driven by AI demand, expanding margins, and improving cash flow, supporting positive 2025 guidance. Despite some backward valuations appearing high, forward-looking valuation ratios and peer comparisons indicate CLS may be undervalued, especially considering its growth prospects. Tariffs and a potential trade war may continue to negatively impact investor sentiment, and the stock may continue to decline over the near and medium term.

Increasing confidence from institutional investors, as well as massive upside potential, suggested from Wall Street analysts are justified by Celestica's rock-solid fundamentals. The company's TTM EPS is at record levels after more than tripling since the beginning of FY2023. Due to the expected aggressive EPS growth, the FY2028 forward P/E ratio is expected to be as low as 7.4.